The Real Deal New York

Steel tariffs unlikely to slow down office, industrial construction: report

A weekly feature bringing you the industry's latest intel
By Christian Bautista | March 21, 2018 02:30PM

A steel mill and NYC offices

Residential

Sales | Apartment List

The majority of New York homebuyers are apparently undeterred by tax reform, with 54 percent saying that the Tax Cuts and Job Acts of 2017 have no impact on their plans. The view of the new tax law’s effects on homeownership is divided along party lines, with 38 percent of Democrats reporting negative impact compared to just 10 percent for Republicans, according to Apartment List. Overall, 26 percent of potential homebuyers in the US plan to delay their purchase because of new tax regulations. Read the report here.

Sales | Leslie J. Garfield

Between March 4 and 17, three townhouses were sold in Manhattan. The most expensive transaction was for the Vanderbilt Mansion, at 16 East 69th Street, which sold for $39 million ($3,220 per foot). The deal stands as the most expensive residential transaction in the Upper East Side so far this year. Nine townhouses were listed in Manhattan during the period, the priciest of which is hedge fund manager Philip Falcone’s 22 East 67th Street townhouse, which has an asking price of $39 million. Read the report here.

Sales | Olshan

Between March 12 and 18, there were 26 contracts signed in Manhattan at $4 million and above. For the third time this year, the most expensive contract was for a townhouse. The 10,253 square foot home at 46 East 65th Street, which was originally listed for $22.5 million, went into contract with a last asking price of $14 million. Read the report here.

Commercial

Impact of Steel Tariffs | CBRE

The cost of construction materials for offices and industrial buildings is expected to increase due to the Trump administration’s steel tariffs. Suppliers have increased their bid prices for rebar by five to eight percent and metal studs by three to five percent. Despite the higher costs, the effect of steel tariffs on commercial construction activity is expected to be negligible, with a skilled labor shortage posing a bigger risk.